> How Personal Financial Advisors can Eliminate Consumer Pain Points
How Personal Financial Advisors can Eliminate Consumer Pain Points
With 2020 now in full swing, it’s safe to say that we’re starting to feel the beginning of what may be a new era in the wealth management world. With the recent Charles Schwab and TD Ameritrade merger, in addition to the industry-wide decrease in margins and increase in fee compressions, personal financial advisors should be taking a step back and asking themselves, “What do my current and prospective clients need and want out of me as their advisor?”
In order to answer this question, we must first understand the pain points of today’s consumers.
Consumer pain points and how advisors can bring their unique value proposition to the table:
Creators of habit: The advising industry has been around for decades. Some of our oldest clients (and, truthfully, advisors themselves) are baby boomers. Typically speaking, baby boomers tend to be creators of habit, and prefer to stay true to what they know, trust, and believe in. For those who have worked with advisors their whole lives, the digital world is a turnoff. In order for advisors to drive home their value proposition to this specific market, they must show that while they may be utilizing technology, it’s solely to help them, help you. In fact, it might not hurt to spend some time walking them through any new technology and showing them how you’re using it.
Fear: Investing and wealth management comes with a lot of risks, and unless a consumer is well versed in the stock market and best investing practices, doing it themselves can quickly take a turn for the worse. As humans, we have a subconscious fear of doing something wrong, and the last thing you want to mess up is your finances. Advisors can play off of this fear to drive home their value proposition to clients by assuring them that their portfolio is in good hands. Walk them through how you go about choosing stocks, managing a portfolio, and allocating portions of their wealth.
Communication/Trust: The biggest part of our business lies in the client-advisor relationships that you create. Many consumers have been burned by previous advisor relationships, have lost the value advisors bring to the table, or desire frequent communication that they maybe weren’t getting elsewhere. In order for advisors to relieve this pain point, they must show the prospective client that they’re genuinely there to talk about and address concerns they may have at any point in their financial journey. It’s also important that advisors establish a relationship deeper than just the finances to gain trust. Ask them about their life, their interests, and how they’re doing. Not only will this help push the relationship to a new level, but you might even uncover some hidden investing opportunities from their personal interests.